Central Bank revokes licenses of 46 microfinance banks
The Central Bank of Nigeria (CBN) revoked the operating licenses of 46 microfinance banks across the country on Wednesday for failing to comply with regulatory requirements. The decision was announced in a statement by its Acting Director of Corporate Communications, Hakama Sidi-Ali, and takes immediate effect. The CBN stated that the action was taken in line with its powers under Sections 12 and 13 of the Banks and Other Financial Institutions Act (BOFIA), 2020.
The affected microfinance banks failed to meet the conditions required to continue operating as licensed financial institutions. Regulatory infractions identified included insufficient assets to meet liabilities, closure of operations without CBN approval, prolonged inactivity and cessation of financial intermediation, failure to commence business within 12 months of receiving a license, and failure to maintain the required minimum capital unimpaired by losses. The CBN stated that "The revocation of the licences is part of the bank's ongoing efforts to safeguard the stability of the financial sector, protect depositors, and ensure that licensed institutions comply with current laws and regulatory requirements."
Quick Summary
The Central Bank of Nigeria has taken action against numerous microfinance banks across the country. This move highlights the ongoing efforts to
Summary - read the full story for complete context.
Image: The Chronicle
GhanaFront aggregates news from trusted sources. Click to read the original article.
Keywords
Explore related tagsMore from The Chronicle
Related Stories
More from Business & Economy
Grey deepens presence in Ghana, Kenya with local currency deposit
Discover how a new initiative in Ghana and Kenya is set to transform the way individuals and businesses manage international transactions.
1h ago•3 min read
Tema Oil Refinery clears six-year backlog of audited financial statements
The Tema Oil Refinery has made a crucial move to rectify years of unaudited financial records, signaling a new era for the state-owned company.
1d ago•3 min read
Oil falls for a third straight day after US, Iran talks conclude in Doha
Discover why ongoing discussions between major global players are impacting oil prices and what it could mean for the future of the market.
3h ago•2 min read
World Bank approves Morocco clean energy project after ending climate lending target
Discover how a major international financial institution is supporting clean energy infrastructure in North Africa amidst evolving climate finance
3h ago•2 min read
